Website design By BotEap.comWhen choosing auto insurance, there are several options to consider when trying to create a policy that best suits your needs. Everyone knows that in almost every state, to legally drive a vehicle, you must have at least liability coverage on your car, but what about other types of insurance? Well, one of the most important options is your collision coverage.

Website design By BotEap.comIf you finance a vehicle to buy or lease, your lender will insist that you have collision coverage, and the more the better. For example, in the state of New Mexico, if you were to lease a Cadillac, the leasing company will likely insist that you purchase the maximum collision coverage available. There are levels of collision coverage that you should familiarize yourself with in order to make the right decision for your situation.

Website design By BotEap.comThe least amount of collision offered would be called the “Limited” option. If you choose this option and rear-end another car, which would be your fault, your limited policy would pay nothing. If you were hit from behind, making the other person at fault, you would pay your chosen deductible and then the insurance company would pay the rest. So if you’re more than 50 percent at fault in a collision and have limited collision coverage, you pay the bill.

Website design By BotEap.comThe middle of the road collision option is called the “Standard” option. In this case, if you crash into another car or are struck from the side, you will be responsible for your chosen deductible, which ranges from $250 to up to $1000. Basically, with the Standard option, what you pay is the same no matter whose be the fault of the accident. Some states offer a zero deductible option, but the premium rates would be considerably higher. The standard collision option is the one most chosen by the average driver.

Website design By BotEap.comThe highest and most expensive collision option is called the “Broad Term” option. In this case, if you are at fault for the collision, or at least more than 50% at fault, you will be responsible for your deductible and the insurance company will cover the rest. If you are No you are at fault for the collision and you have long-term collision coverage, you pay nothing. The insurance company would pay everything for you 100%.

Website design By BotEap.comAlso keep in mind that the insurance company is only responsible for covering damages up to the value of the car. So, if you really do get into a big collision and your car is flattened and will cost more than its actual value to repair, it will be totaled, just for thought.

Website design By BotEap.comSo shop carefully for your auto insurance policy, choose your options wisely, be a safe driver, and make sure you’re covered to the best of your budget.